Law Commons^™

Darn Your Sox: Exploring Retroactive Application Of Extended Statutes Of Limitation And Repose In Securities Fraud Litigation, Sarah J. Greenberg

ExpressO

Unintended and unanticipated consequences of the 2002 enactment of Sarbanes Oxley are only recently making themselves known. One of these consequences includes differing interpretations of the section of Act which extends the statute of limitations for Sec. 10(b) securities fraud actions. The remedial nature and plain language of the Act call for retroactive application of the extended limitations period to revive previously time barred claims. The SEC has argued vigorously for such an interpretation, but, unfortunately, the majority of circuit courts analyzing the matter oppose this interpretation.

In my piece, Darn Your SOX: Exploring Retroactive Application of Extended Statutes of …

Merrill Lynch V. Dabit: Federal Preemption Of Holders' Class Actions, Mark J. Loewenstein

Publications

No abstract provided.

Reforming The Securities Class Action: On Deterrence And Its Implementation, John C. Coffee Jr.

Faculty Scholarship

Securities class actions impose enormous penalties, but they achieve little compensation and only limited deterrence. This is because of a basic circularity underlying the securities class action: When damages are imposed on the corporation, they essentially fall on diversified shareholders, thereby producing mainly pocket-shifting wealth transfers among shareholders. The current equilibrium benefits corporate insiders, insurers, and plaintiffs' attorneys, but not investors. The appropriate answer to this problem is not to abandon securities litigation, but to shift the incidence of its penalties so that, in the secondary market context, they fall less on the corporation and more on those actors who …

After Dura: Causation In Fraud-On-The-Market Actions, Merritt B. Fox

Faculty Scholarship

On April 19, 2005, the Supreme Court announced its unanimous opinion in Dura Pharmaceuticals, Inc. v. Broudo, concerning what a plaintiff must show to establish causation in a Rule lob-5 fraud-on-the-market suit for damages. The opinion had been awaited with considerable anticipation, being described at the time of oral argument in the Financial Times, for example, as the "most important securities case in a decade." After the opinion was handed down, a representative of the plaintiffs' bar lauded it as a "unanimous ruling protecting investors' ability to sue." A representative of the defendants' bar equally enthusiastically hailed it as "a …